The European Music Managers Alliance (Emma) has called on the continent’s copyright collection societies to involve artists and their representatives in any discussions about how to set new licensing rates for livestreamed concerts.
The umbrella organisation, which represents Music Managers Forums in the UK, France, Finland, the Netherlands, Sweden, Norway and Poland, warns that if performance rights organisation (PRO) tariffs are levied at too steep a rate, this could kill off this growing format by making the majority of live streams financially unviable.
According to Emma, the actions of “certain PROs and major music publishers” – which have unilaterally decided live streams are akin to a music stream, rather than a live show, and so subject to much higher digital audio tariff – “are threatening the viability of ticketed livestreams across Europe”. The estimated size of these digital audio-based payments is “is so high that it would make the majority of livestreams unviable”, the association warns.
Emma’s intervention follows controversy over the decision by PRS for Music, the UK PRO, to impose without consultation a new tariff of up to 17% on livestreamed shows, in a move criticised by the UK Music Managers Forum, among others. PRS today (16 February) announced a consultation, or “call for views”, on the tariff, which runs until 12 March.
“Set licensing rates too high, and the costs of producing livestream shows simply won’t stack up”
Emma says while it agrees songwriters must be fairly compensated when their songs are performed in a live stream, European PROs should instead apply their standard live tariffs to ticketed livestreamed events until a new livestream rate is agreed with artists and managers.
“Everyone wants live shows to return as soon as it’s safe for audiences to come back. In the meantime, livestreaming has provided one of the few alternatives for artists to perform before an audience, build a fanbase, and generate revenues through ticket sales,” comments Emma chair Per Kviman (MMF Sweden).
“Emma is urging PROs across Europe to be sensitive to these facts, and that the imposition of any new licensing tariffs should involve full and open consultation – including with artists and their representatives.
“Get the balance right, and we could nurture a vibrant new format that complements live events and provides artists and songwriters with a valuable source of revenue. But set licensing rates too high, and the costs of producing livestream shows simply won’t stack up.”
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